In a monopolistically competitive market if the additional revenue generated from advertising equals the additional cost of advertising, the firm should
A. advertise less to decrease costs.
B. maintain its current amount of advertising.
C. advertise more to lower marginal costs.
D. advertise more to increase sales.
Answer: B
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By the early sixteenth century, the center of wealth and commerce of Europe had shifted:
a. from the Baltic to the Mediterranean. b. from the Mediterranean to the Atlantic. c. from Italy to North Africa. d. from France to Africa.
Which of the following statements is true?
a. A vertical merger is a merger of firms that compete in the same market. b. The rule of reason doctrine declares that the existence of monopoly alone is illegal. c. Government regulation is economically justifiable for a natural monopoly. d. Deficient information on unsafe products causes underconsumption.
Productivity is definitely enhanced by:
A. Higher taxes. B. More government regulation. C. Education and training activities. D. Limits on immigration.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.